Tuesday, January 14th, 2020
Indices: US stocks were little changed in today’s session with the Dow Jones Industrial Average inching higher by just 33 points or 0.11%. The S&P 500 and Nasdaq closed lower by 0.15% and 0.24%, respectively. The Russell 2000 was the strongest of the major averages, gaining 0.37%.
Sectors: Health Care led, gaining 0.61%. Real Estate lagged, falling 0.49%.
Commodities: Crude Oil futures were more or less flat, closing at $58.14 per barrel. Gold futures were also flat and continue to trade at $1,547 per ounce.
Currencies: The US Dollar Index moved just 0.05%.
Interest Rates: The US 10-year Treasury yield moved lower to 1.813%.
Here are the best charts, articles, and ideas being shared on the web today!
Chart of the Day
— BostonCharts (@bostonchaahhts) January 14, 2020
Today’s Chart of the Day was shared on Twitter by BostonCharts (@bostonchaahhts). It’s a daily candlestick chart of the US 10-year Treasury yield ETF, $TNX. Price has been consolidating into an ascending triangle pattern over the past five months, as illustrated by the horizontal resistance line and the rising support trendline. As price works its way toward to apex of this triangle, the range gets tighter and tighter, and the likelihood of a strong breakout in either direction increases. The direction in which price resolves will give us a better understanding of the overall trend in Treasury yields. BostonCharts suggests that the path of least resistance is lower because $TNX is currently in a clear downtrend. It would be wise to keep an eye on this chart because the direction in which yields are trending will have a significant impact on other asset classes, and the breakout could occur within the next couple of weeks.
Quote of the Day
“No man is better than a machine, and no machine is better than a man with a machine.”
– Paul Tudor Jones (Hedge Fund Manager)
Three Months and Counting Since the Last 1% Decline – Bespoke
The S&P 500 has gone over three months without a decline of 1% or more. In this note, Bespoke compares the current streak to other similar streaks without a 1% decline.
Strategas’ Chris Verrone Says ‘Under the Surface’ Market Trends Appear Optimistic – CNBC
Chris Verrone shares his technical perspective on the S&P 500, Emerging Markets, and Alibaba ($BABA).
January Trifecta Jackpot for Stocks – Almanac Trader
Jeff Hirsch takes a look at the three important seasonality indicators to watch in January, known as the January Trifecta.
Maximizing Moving Averages – The Final Bar
David Keller discusses the value of using moving averages to tune out the noise and identify the trend.
Stock Market Price Action Recap – The Trade Risk
In this video, Evan Medeiros reviews the charts and price action of some of the major markets.
Top 10 Tweets
– "Traders are acting like puts don't exist" @AndrewThrasher
– The $SPX is overbought on many breadth indicators w/ sentiment stretched
— Adam D. Koos, CFP®, CMT (@AdamKoos) January 14, 2020
Good morning… and 66 days without a 1% decline in $SPX.
Just passed the 65d streak which topped the market in 2004 (fell -9% next 7M).
Tied for 5th longest in 20+ years (July 2014 fell -10% next 3M).
— Macro Charts (@MacroCharts) January 14, 2020
It is historically rare to see S&P weekly momentum this overbought. Consolidations often occur from this condition, but more often than not, the longer-term trend ultimately resumes. Via @verrone_chris @Todd_Sohn pic.twitter.com/aRL2JFsFvg
— Strategas (@StrategasRP) January 14, 2020
— Sam McCallum (@honeystocks1) January 14, 2020
Australia ETF pic.twitter.com/EmCk1prsJq
— Linda Raschke (@LindaRaschke) January 14, 2020
— jeroen blokland (@jsblokland) January 14, 2020
Copper is trying to turn higher here.
If it does (my expectation), should lead to higher yields as well. pic.twitter.com/HHe3SfCwaG
— Ryan Detrick, CMT (@RyanDetrick) January 14, 2020
Lots to like about this #copper chart. Breakout & successful retest of falling TL. Breakout of horizontal resistance today on huge candle. Looking for 2.96 near term. Break above and 3.31 in play. $HG pic.twitter.com/BkaRI5rNoN
— Tarek I. Saab (@FibLines) January 14, 2020
"Parabolic advances usually go further than you think, but they do not correct by going sideways." — Bob Farrell's (Merrill Lynch) Rule Number Four pic.twitter.com/5j8CYU2Zwf
— Walter Deemer (@WalterDeemer) January 14, 2020
Dow Flirts with New High. Gets Number. Never Calls. pic.twitter.com/ToyUevgyxJ
— Eddy Elfenbein (@EddyElfenbein) January 14, 2020